New policy to rein in app-based cab companies like Uber, Ola and others: Gopal Rai

Transport Minister Gopal Rai said government has started working out modalities of the policy which will soon be made public.PTI | April 20, 2016, 21:05 IST

In order to rein in app-based taxi services, Delhi government has decided to introduce a policy under which cab companies will be bound to charge fares to be prescribed by the Transport department.

Transport Minister Gopal Rai said government has started working out modalities of the policy which will soon be made public.

"The policy will be exclusively for all the app-based taxis giving their services in the national capital. We will fix fares for them as we have done in the case of radio, economy cabs and kali-pili taxis. All app-based taxi services will be regulated through this policy," Rai told PTI.

The Transport minister said once the new rules are laid down, app-based cab companies will be bound to follow the same.

Earlier in the day, Delhi Chief Minister Arvind Kejriwal said that surge pricing by app based taxi operators is "daylight robbery", asserting that overcharging and blackmailing won't be allowed in the national capital.

"Surge pricing is daylight robbery. No responsible govt can allow that," he tweeted

A senior official said that several app-based cab companies, including Ola and Uber, are not registered with the Delhi government Transport department, but still they are running their taxis in the capital. Under new policy, these companies will have to seek licence to operate their taxis.

The government's move comes after it received several complaints of surge pricing by Ola, Uber and other companies since the second phase of odd-even was implemented.

Another senior official said that as most app-based companies, including Ola and Uber, are not registered with Transport department and their taxi operation is "illegal", government can not "rein in" them due to which they are free to decide their fares as per their business interest.

"The overcharging violations do not apply on app-based taxi services as they are not registered with government.

"However, government will ensure that these operators do not charge exorbitant fares even after the wrapping up of odd-even scheme," the official further said.